The CAR Group Ltd (ASX: CAR) share price is once again in the red on Friday.
At the time of writing, shares are down 1.92% to $22.51, after falling as low as $22.19 earlier in the session. That marks a multi-year low, with the stock now trading at levels last seen in April 2023.
The latest move adds to a rapid decline this year, with CAR Group shares now down around 27% since January.
Here's what's driving the continued weakness.
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Strong results but share price still falling
CAR Group operates a global online automotive marketplace, with established platforms across Australia and international markets.
Recent results point to continued growth, with double-digit increases in both revenue and EBITDA in its latest half-year update. This was supported by pricing gains and product improvements across its platforms.
However, this has not been reflected in the share price.
Recent broker commentary indicates the stock has been caught in broader tech sector selling, with concerns around artificial intelligence (AI) disruption weighing on valuations. This trend has also affected similar digital platform companies, particularly those relying on listings and advertising.
In addition, the company was previously trading at a premium, which has left it more exposed to a de-rating as sentiment has weakened.
Technical picture shows sustained downtrend
The share price has moved steadily lower since peaking near $40 in 2025, with lower highs and lower lows forming throughout the period.
Bollinger bands indicate the stock is trading near the lower band, and the relative strength index (RSI) is sitting around the mid-30s.
There is also limited nearby support, with the recent low around $22.19 acting as the first key level. A break below this could open the door to further downside, while resistance appears to be forming closer to the $24 to $25 range.
What the market is pricing in
The current share price suggests the market is reassessing expectations around the company's growth and valuation.
While the business continues to expand globally and deliver earnings growth, sentiment toward technology-linked names has softened.
This has led to a pullback in valuations across the sector, even where CAR Group's underlying earnings remain solid.
Foolish Takeaway
CAR Group shares are now trading at multi-year lows after a sharp decline in 2026.
The business itself continues to deliver growth, but the share price reflects changing sentiment toward valuation and sector-wide pressures.
With the stock trending lower and technical indicators still weak, near-term performance is likely to depend on market conditions and investor confidence in the company's growth outlook.
